Hedging Bitcoin with Futures – How to Protect Your Long Term Crypto Investments During a Downturn

Hedging Bitcoin with Futures – How to Protect Your Long Term Crypto Investments During a Downturn // In this video I detail why and how to hedge Bitcoin with …


  1. Are you selling part of your short after buying low limits as a way to double dip on the uptrend? locking in the short profits + profiting on the new low limit longs? Or some sort of market making strat?

  2. Sorry this might be a bit lengthy, but let's say that I have a 1BTC spot (long) position with BTC at $10,000, and that I see the price going down and I believe that was the top of the move; is correct to say that I can open a short at, let's say $9,000 (so blocking my value at $9k), with a leveraged amount such that my liquidation price is just above $10,000 (following the reasoning that if BTC makes a new high I am ok with closing my short and being net long again), so that my worst case scenario is to lose the entire leveraged amount that I have used to hedge, which amount will depend on the original amount that I wanted to hedge and the leverage that I have used (the higher the leverage, the lower the amount that I can actually lose in this case)? Thanks very much

  3. Thanks so much! I've heard about hedging this way before but never explained in a clear way for someone who's never short using Bitmex before. In all honesty, this was much more useful information than the 100,000+ subscriber crypto channels.

  4. Hi Charlie, first of all let me thank you for taking the time to make these great videos! I was hoping you could shed some light over the following doubt that I have… Let's say I have an open futures position (long or short) and the contract expires, what happens then? I know that at that point the contract price should be the spot price of the underlying asset, but does it roll over automatically? or does bitmex closes the position? is the money lost? hah I hope not. Thanks in advance!

  5. how did you put in 10000usd when you only had 0.1 in your account which is approx $1000. You at first mentioned 10x but then you put to 0 cross? does this not cancel 10x? thanks

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